Import VAT and Duties treatment for SACU and Extra-SACU imports

Import VAT and Duties treatment for SACU and Extra-SACU imports

Import Value Added Tax (VAT) is the amount charged on all imported goods and services

Treatment for import VAT

For goods imported within SACU Region, VAT is paid on customs value but goods from extra SACU are charged based on customs value + customs duty + freight and insurance.

What are Customs Duties?

The tax imposed on goods when they are transported across international borders.

Treatment of Customs Duties for SACU

SACU member states agreed not to charge customs duties on goods imported within them. That says goods bought from any of 4 member states, don’t pay customs duties when imported into Lesotho.

 

Treatment of Customs Duties for Extra-SACU

SACU has trade agreements with some other world customs unions as to lower the customs duties charged against each other. That means goods from the countries which have agreement with SACU pay lower or no customs duties. But goods from where there is no trade agreement will have to pay general duties which are not negotiated. 

Why is VAT charged on imported vehicles?

The vehicles bought within SACU Region pay 15% Vat on customs value, but the vehicles bought outside SACU are charged that 15% VAT based on customs value + customs duty + freight and insurance

What are VAT charges on imported vehicles?

15%

How are customs Duties calculated?

By applying the following tariff types:

·         Specific duties – 2500 cents per kg or 30 cents per litre.

·         Ad Valorem (Fixed percentages of the customs value) – 10% or 30%

·         Compound (combination of rated and Ad Valorem duties applicable to goods mentioned in the same tariff heading) –

·         20% + 8 cents per kg or 50 cents per square meter less 20%

·         15 % or 500 cents per square meter

 



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